India to continue buying Russian oil, says official

PTI

New Delhi, December 2

India will continue to buy crude oil from anywhere in the world, including Russia, to meet its energy needs, a top official said ahead of EU restrictions on Russian oil kicking in.

Price-cap mechanism

• The EU has asked its 27-member nations to cap the price of Russian oil at $60 as part of the West’s attempt to squeeze Moscow’s oil revenue
• Under the price-cap system that kicks in from December 5, companies shipping Russian oil outside of Europe would only be able to access EU insurance and brokerage services if they sell the oil at or under $60

The executive body of the European Union has asked its 27-member countries to cap the price of Russian oil at $60 as part of the West’s attempt to squeeze Moscow’s oil revenue and limit its ability to wage war in Ukraine while keeping global prices and supplies steady.

“Unlike Iran and Venezuela, there are no sanctions on buying oil from Russia. So anyone who can arrange for shipping, insurance and financing outside of the EU can buy oil,” the official said.

The price caps are part of the EU’s plan to use its clout in insurance and shipping industries to crimp Moscow. “We will continue to buy oil from anywhere in the world, including Russia,” he said.

Under the price-cap system that kick-in from December 5, companies shipping Russian oil outside of Europe would only be able to access EU insurance and brokerage services if they sell the oil at or under $60.

India, the world’s third-largest crude importer after China and the US, has been snapping Russian oil that was available at a discount after some in the West shunned it as a means of punishing Moscow for its invasion of Ukraine.

From a market share of just 0.2% in India’s import basket before the start of the Russia-Ukraine conflict, Russia’s share of India’s imports rose to 4.24 million tonnes, or nearly 1 million barrels per day, in October, taking a 21% share comparable to that of Iraq and higher than Saudi Arabia’s share of around 15%.